Management vs. Administration: What's the Difference?

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Key Difference

The key difference between management and administration is that management is the act or purpose of putting into practice the policies and strategies determined by the administration while the administration set up the goals and crucial policies for the company.

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Comparison Chart

BasisManagementAdministration
MeaningAn organized way of managing people and things of a business organization is called the Management.The process of administering an organization by a group of people is known as the Administration.
AuthorityMiddle and Lower LevelTop level
RoleExecutiveDecisive
Concerned withPolicy ImplementationPolicy Formulation
Area of operationIt works under administration.It has full control over the activities of the organization.
Applicable to Profit making organizations, i.e. business organizations.Government offices, military, clubs, business enterprises, hospitals, religious and educational organizations.
DecidesWho will do the work? And How will it be done?What should be done? And When is should be done?
WorkPutting plans and policies into actions.Formulation of plans, framing policies and setting objectives
Focus onManaging workMaking best possible allocation of limited resources.
Key personManagerAdministrator
RepresentsEmployees, who work for remunerationOwners, who get a return on the capital invested by them.
FunctionExecutive and GoverningLegislative and Determinative
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What is Management?

The term “management” originated from the term “manes” which means “to control by hand”. Management focuses on motivating and controlling functions as well as technical skills and human resources skills. It’s an art of managing employees and their work. Management is a dynamic process consisting of different elements and actions. These actions are different from operative functions like marketing, finance, purchase etc. Many experts have categorized functions of management the most widely accepted functions of management are Planning, Organizing, Staffing, Directing and Controlling. Management is a middle-level activity and inferior to administration. It’s concerned with employees.

What is Administration?

The term “administration” originated from term “minor” and “ministrare” which means ” to serve” and ” to govern” accordingly. The administration comprises the persons that are partners or owners of their company. They usually invest in the company’s funds and earn returns or profits on their investment. The key administrative purpose is managing the business aspects of the company, such as financing. Other administrative purposes normally include planning, organizing, staffing, directing, budgeting and controlling. The administration must incorporate vision and leadership, to arrange the resources and people, to accomplish common goals and goals for the company.

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Management  vs. Administration

  1. Management implements the policies and goals set by the administration. On the contrary, the administration forms the policies and objectives of a company or firm.
  2. Management is a middle-level executive authority and is responsible for the execution of the policies and goals as determined by the administration. On the other hand, the administration is on the top level of the organization with the critical functions. They are responsible for determining the policies and aims of the business or the company.
  3. Management maintains the function of the business whereas, the administration maintains the form of the company.
  4. Management makes the decisions inside the boundaries of the frame, which can be put up from the administration while the administration makes the vital decisions of business completely.
  5. In management, technical skills and human relationship management skills are crucial. Conversely in administration one requires administrative qualities, instead of technical ones.